PureTech Health's Karuna raises $68m in series B financing
By Josh White
Date: Monday 18 Mar 2019
(Sharecast News) - Biopharmaceutical company PureTech Health announced on Monday that its affiliate Karuna Therapeutics has completed a $68m series B financing round, including the issuance of $5m in shares upon conversion of debt into equity.
The AIM-traded firm said proceeds from the financing would be used to advance the development of the 'KarXT' product into several new indications, including geriatric psychosis and pain, as well as to progress new formulations of KarXT.
It would also expand its pipeline and continue to build company infrastructure with the remainder of the proceeds.
KarXT, Karuna's lead product candidate, was currently being evaluated in a phase 2 clinical trial as a potential treatment for acute psychosis in patients with schizophrenia.
"We are pleased to have the participation of this top tier group of new and existing investors in Karuna as the company continues to progress KarXT through a phase 2 study in schizophrenia and looks to expand into new indications, including geriatric psychosis and pain where there is tremendous patient need," said PureTech Health chief innovation officer Eric Elenko.
PureTech's percentage ownership of Karuna Therapeutics following the financing was approximately 41.0% on a diluted basis.
That calculation of PureTech's holding included issued and outstanding shares, as well as options and warrants to purchase shares, but excluded unallocated shares authorised to be issued pursuant to equity incentive plans.
As at 1124 GMT, shares in PureTech Health were down 1.29% at 164.84p.
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